Not everything in the real estate business is in abundance of supply.
Lay-offs in the manufacturing sector will catch up with our industry as well. It not just about houses and cars, it's about inventory available for renovations, repairs and new construction. Developers have mothballed many projects around the country, and as they wait for the market to turn. Their traditional supplies have had to slow production or close down plants completely...for lack of orders.
The economists and prognosticators I have read have suggested the recovery is a year or two off. That may seam like a long time for the resale market, but for new construction it may mean the need for short supplies, low inventory and a finite amount of warehoused back stock.
If you are waiting for the market to get better to build, do an addition or restart a subdivision you better be prepared to pay higher prices for lumber and material. These manufacturers are some of the companies laying off workers, reducing shifts and ware housing a bare minimum of supply.
As with every economic turn , the smart money gets out early and gets back in before the rest of the conservative players. If you plan to build a home or resart a month balled project now may be the best time to begin. Your finished offering or completed home will be done before your contractor has to pass on the higher materials costs of builders competing for a limited amount of ready supply.
In my opinion this theory goes for land purchases as well, this too is raw material for a building project. Land prices will only go up as resale inventory goes down. The signal for land sellers to raise prices or withdraw the flexible consideration of price and terms, is a factor of supply and demand as well. If you have had your eye on a land purchase your days of great deals are numbered.
Your success in the field of real estate requires you to act ahead of the crowd, and time your purchase correctly. The bottom of the market is visible only when looking a historic data. In other words we know when the recovery happen after it takes place.
Toll free: 800-926-5653
Your White Mountain Real Estate Expert.